Office Depot Pressured by Activist Hedge Fund, Shares Rise

Shares of Office Depot (NYSE:ODP[1]) rose on word that a hedge fund has acquired a significant stake in the company and was pressuring its management to make changes[2].

In a letter to Office Depot’s board, Starboard Value announced that it had acquired 13.3% of the retailer’s shares, making it the chain’s largest single shareholder, the New York Times noted.

Noting that Office Depot’s share price has lagged its competitors like Staples (NASDAQ:SPLS[3]) and Office Max (NYSE:OMX[4]), Starboard Value called on the company’s management to slash costs and sell assets.

Shares of Office Depot climbed more than 5% in Monday afternoon trading.

Starboard noted the the office product retailer had made some moves to address its sluggish performance, but called for more dramatic efforts.